Tips for Working with a Mortgage Broker

Learn all about mortgage brokers, from what they do to how they get paid and tips for working with them. Here’s how to best work with a mortgage agent.

Are you getting ready to buy your dream home?

Hopefully, you found what you wanted. But before you take the final step, you need to get your finances in order.

It’s time to get in touch with a mortgage agent.

Getting a mortgage is the most popular method of financing a home. In fact, 78% of houses are bought with one.

Do you know what an agent does? Our post will tell you what you need to know.

Keep reading to learn five things you need to know about your mortgage broker.

1. Are Brokers All The Same?

The only thing a broker does is help you find a mortgage, right?

There’s more to it than that, and there are two main types of brokers.

Tied Broker

If you are looking for a specific kind of lender, you will find a tied broker that works well with that kind of loan.

You will be more limited in these deals, but a broker that specializes in certain areas may be able to offer you better deals.

Whole of Market Brokers

A whole mortgage broker covers a broader area. They will be able to provide you a more comprehensive range of deals.

2. How Are Brokers Paid?

The good thing about a mortgage broker is they work on commission. There isn’t a downside for you here. There aren’t many cases of a borrower paying the broker.

They get paid by the lender. When they set up a deal for them, they get paid based on the total amount of the loan.

This commission typically is in the range of 1% to 2% of the loan value.

3. Are Mortgage Brokers Different Than Loan Officers?

A mortgage broker will get you to the same result as a loan officer: a loan for a home purchase.

But a broker isn’t the same as a loan officer. A loan officer works for an organization and is paid a set salary.

Mortgage brokers work for mortgage agencies or work independently.  The bulk of their income is from the commissions they make on deals.

4. How Can a Broker Help?

A broker can help by giving you more access to lenders.

It takes time to find people who will loan you money. Brokers have already done this work.

They are motivated to help you because they are paid based on commission. They don’t get paid until you get cash for your home.

It also takes a lot of time to apply for loans. They can handle this process for you and save you a lot of time.

Read more here about services a mortgage broker will offer you.

5. What’s the Best Way to Find a Broker?

The best way to find someone to work with you is to ask the people you know. A referral is the best way to find someone that does excellent work.

They will be able to tell you what it is like to work with someone. This includes the good and the bad.

Find Your Mortgage Agent Today

Talking with a mortgage agent shouldn’t cause you stress. They are there to help you get the funds you need to buy your home.

Make sure you make use of your broker to get the money you need for your dream home.

There are plenty of options out there. Start your search now so you can find your mortgage broker.